Dynamics of Sector Switching: Hazard Models Predicting Changes from Private Sector Jobs to Public and Nonprofit Sector Jobs

Policy makers and public managers emphasize the importance of bringing private sector experience and skills into the public and nonprofit sectors. One result is an increased focus on privatization and contracting out, developments to which researchers have been attentive. However, the long-standing practice of hiring people with industrial experience into the public and nonprofit sectors has received remarkably little attention. This study, based on questionnaire responses from mid- and upper-level personnel in public and nonprofit sector organizations, attempts to understand the dynamics of sector switching from the private into either the public or nonprofit sector. Using event history analysis, the article looks at switching patterns. The probability of switching into the public sector is much higher for those who held a managerial occupation in their previous private sector job than for those who held professional and technical positions. Having more subordinates in a previous private sector job is associated with a lower likelihood of switching into a public sector job. By contrast, switching into the nonprofit sector is more often associated with a promotion.     

Sector Switching from a Business to a Government Job: Fast‐Track Career or Fast Track to Nowhere?

This paper examines the career consequences for public managers of having had full-time private sector work experience. We find positive career outcomes for public managers with private sector experience: Individuals with such experience are more likely to have been recently promoted relative to peers and to supervise somewhat greater number of employees, especially if their most recent job was in the private sector. While experience in the private sector enhances such career outcomes, the length of such experience diminishes them. The authors conclude by identifying three career scenarios emerging from the models and discussing the managerial and theoretical implications of "sector-switching careers."     

Comparing Public and Private Managers' Leadership Styles: Understanding the Role of Job Context

ABSTRACT

Comparing public and private managers is a major subject in the public management literature, but there have been only a few empirical studies of the differences in their respective leadership styles. Traditionally, leadership style is explained by the characteristics of the manager, the employees, and their job. This study explains leadership by the manager's job context: the degree of job complexity, role clarity, and job autonomy. We argue that differences in job context explain the use of different leadership styles in the public and private sector. To clearly specify the importance of sector, the study investigates direct, mediating, and moderating effects. Based on a survey of Danish public and private managers with 949 respondents, this article shows that job context variables vary significantly between public and private sector managers. The article provides some explanations for why public managers use more participative leadership, while private ones use more directive leadership.     

The Link Between Job Satisfaction and Organizational Commitment: Differences Between Public and Private Sector Employees

ABSTRACT

Employees in the public and private sectors experience different working conditions and employment relationships. Therefore, it can be assumed that their attitudes toward their job and organizations, and relationships between them, are different. The existing literature has identified the relationship between organizational commitment and job satisfaction as interesting in this context. The present field study examines the satisfaction–commitment link with respect to differences between private and public sector employees. A sample of 617 Greek employees (257 from the private sector and 360 from the public sector) completed standardized questionnaires. Results confirmed the hypothesized relationship differences: Extrinsic satisfaction and intrinsic satisfaction are more strongly related to affective commitment and normative commitment for public sector employees than for private sector ones. The results are discussed, limitations are considered, and directions for future research are proposed.     

We’re Not all Happy Yet: Attitudes to Work,Leadership, and High Performance Work Practices among Managers in the Public Sector

This article explores the attitudes of male and female managers in the public sector toward high performance Human Resource Management (HRM) policies and practices, work, and organisational leadership, and compares these attitudes to those of managers in the private sector. It finds that female public sector managers are most positive about high performance HRM policies and practices. Male public sector managers are less positive than female managers in the public sector and male and female managers in the private sector across all the measures. Psychological contract theory suggests either the changes associated with high performance HRM policies and practices, or attempts to decrease the disadvantage felt by women in the public sector may have resulted in a sense of disadvantage among some men in the sector, and created a changed, more transactional psychological contract between these men and their organisation. Strategies are needed to reengage public sector men.     

A Comparison of the Values and Commitment of Private Sector, Public Sector, and Parapublic Sector Employees

This study investigated differences in general values, work values and organizational commitment among 549 private sector, public sector, and parapublic sector knowledge workers. No differences in general values were observed across sectors, although five significant work value differences were revealed: parapublic employees value work that contributes to society more than public servants, who value it more than private sector employees; parapublic employees value opportunities for advancement less than both public and private sector employees; public servants value intellectually stimulating and challenging work more than parapublic employees; and private sector employees value prestigious work more than public servants. Private sector employees displayed greater organizational commitment than the employees in the other two sectors. Overall, the findings suggest only limited value differences among employees of the various sectors. The finding of some work value differences between employees in the public and parapublic sectors suggests that these two groups merit separate consideration in comparative studies such as this one.     

An Analysis of Differences in Work Motivation between Public and Private Sector Organizations

This study contributes to our understanding of the differences in work motivation between the public and private sectors. Data from a survey of 3,314 private sector and 409 public sector employees in Belgium strongly confirm previous research showing that public sector employees are less extrinsically motivated. Differences in hierarchical level are more important determinants of work motivation than sectoral differences. In addition, most observed differences can be wholly or partially explained by differences in job content, not by the sector itself. Evidence is presented to show that motivational differences can be explained by a positive choice of work–life balance.     

Public versus Private Managers: How Public and Private Managers Differ in Leadership Behavior

This article aims to find out whether there are behavioral differences between public and private sector managers. Two groups of public managers (managers of social insurance agencies and public school principals) and a group of private managers (two samples) are investigated. Behavioral dimensions are investigated including leadership style (task, relationship, and change orientation), decision‐making style (the functions of sensing, intuition, thinking, and feeling), and motivation profile (achievement, affiliation, and power motivation). An analysis of data from 459 managers in four organizations in Sweden reveal significant differences in behavior between public and private managers. However, no significant differences in leadership behavior are discovered among public managers. Possible explanations for such differences and similarities are explored.     

Goats or wolves? Private sector managers in the public sector

Public administration reforms have propagated the use of private sector management skills in the public sector, and an increased openness to managers with a private sector background. This has created a debate between those who think private sector experience improves public institutions by bringing core managerial values such as results orientation, efficiency, or openness to innovation, and those who argue that private sector experience can damage core public sector values, such as impartiality and equity. Despite the abundant anecdotal evidence, broad empirical evidence on the effects of private sector experience on public managers' values remains limited. Using data from a survey among central government top managers in 18 European countries, we show that public managers with private sector experience have, as expected, more core managerial values. Yet, unlike the conventional view, core public values do not suffer.     

More Similarities or More Differences? Comparing Public and Nonprofit Managers’ Job Motivations

Existing research on career motivations tends to focus either on the difference between private and public organizations or on the difference between nonprofit and for‐profit firms. Although commonalities exist, the literature suggests that there also are many differences in what motivates public and nonprofit employees. Employing data from the National Administrative Studies Project III, this research examines how seven motivational aspects correlate with the choice between public and nonprofit employment. The authors find that managers who value advancement opportunities, a pension and retirement plan, and the ability to serve the public in their jobs are more likely to accept a job in the public sector, whereas managers who value family‐friendly policies and increased responsibility are more likely to accept a position in the nonprofit sector. Participation in volunteering is positively associated with nonprofit employment. The authors suggest a possible link between volunteering and the unique nonprofit motivation that is differentiated from public service motivation.     

Implementing Open Innovation in the Public Sector: The Case of Challenge.gov

As part of the Open Government Initiative, the Barack Obama administration has called for new forms of collaboration with stakeholders to increase the innovativeness of public service delivery. Federal managers are employing a new policy instrument called Challenge.gov to implement open innovation concepts invented in the private sector to crowdsource solutions from previously untapped problem solvers and to leverage collective intelligence to tackle complex social and technical public management problems. The authors highlight the work conducted by the Office of Citizen Services and Innovative Technologies at the General Services Administration, the administrator of the Challenge.gov platform. Specifically, this Administrative Profile features the work of Tammi Marcoullier, program manager for Challenge.gov , and Karen Trebon, deputy program manager, and their role as change agents who mediate collaborative practices between policy makers and public agencies as they navigate the political and legal environments of their local agencies. The profile provides insights into the implementation process of crowdsourcing solutions for public management problems, as well as lessons learned for designing open innovation processes in the public sector.     

Public–Private Partnerships and the Public Accountability Question

Public–private partnerships (PPPs) are growing in popularity as a governing model for delivery of public goods and services. PPPs have existed since the Roman Empire, but their expansion into traditional public projects today raises serious questions about public accountability. This article examines public accountability and its application to government and private firms involved in PPPs. An analytical framework is proposed for assessing the extent to which PPPs provide (or will provide) goods and services consistent with public sector goals of effectiveness, efficiency, and equity. Six dimensions—risk, costs and benefits, political and social impacts, expertise, collaboration, and performance measurement—are incorporated into a model that assists public managers in improving partnerships’ public accountability.     

Public–Private Partnerships in Urban Infrastructures: Reconciling Private Sector Participation and Sustainability

The speed and scale of urbanization provide serious challenges for governments all over the world with regard to the realization, maintenance, and operation of public urban infrastructures. These infrastructures are needed to keep up with living standards and to create conditions for sustainable development. The lack of public funds and the inefficiencies of public service provision have given rise to initiatives to stimulate private parties to invest their resources in public urban infrastructures. However, private sector participation creates a whole range of new challenges. The potential benefits are countered by concerns about the compatibility of the private sector's focus on short-term return on investment with the long-term perspective needed to realize sustainability targets. On the basis of a review of literature on experiences with private sector participation in urban infrastructure projects, this article identifies governance practices that help or hinder the reconciliation of private sector participation in urban infrastructure projects with the objective to increase the sustainability of the urban environment.     

What's in a Sector? The Shifting Career Plans of Public Policy Students

Recent decades have seen a trend in which public policy graduates shun government and enter private-sector employment. In part, the shift reflects changing sectoral opportunities, but its magnitude and consistency are puzzling—even troubling—in light of the need for public-sector talent. Data from a two-year series of surveys and interviews with policy students reveal that many begin their training with uncertain career goals and ambivalence about public-sector work. Interest in government declines from entry to graduation, and it appears that the policy curriculum—heavy on analytic methods and conveying cautions about policy making—does little to promote a public-sector orientation. Those planning to enter government are strongly motivated by a desire to have an impact, whereas those drawn to the private sector seek financial resources and professional development. Many anticipate fluid careers and choose positions expected to offer growth, a feature more commonly associated with private than public jobs.     

The Grass is Greener,But Why? Evidence of Employees’ Perceived Sector Mismatch from the US,New Zealand,and Taiwan

ABSTRACT

To answer the question of who wants to work for the government, scholars have relied on a few approaches, including sector preference, sector-based comparison of work motives, and sector-switching patterns of job mobility. The present study offers a related but distinct approach: perceived sector mismatch. The attractiveness of public sector jobs differs greatly across countries; thus, in order to present a more comprehensive study, we examine data from the U.S., New Zealand, and Taiwan, where attitudes towards public sector jobs differ significantly as a result of different public service laws and traditions. Across all three samples, we find that, among private sector employees, the preference for a public service job is related to socio-economic disadvantage. Among public sector workers, reasons for perceived sector mismatch vary, but often suggesting job dissatisfaction in current public sector jobs, rather than perceived advantages of the private sector (including compensation). These findings are followed by theoretical and practical implications from this comparative study.     

Institutional Constraints,Managerial Choices,and Conflicts in Public Sector Supply Chains

In this research, we compare the governance mechanisms that public sector managers and private sector managers leverage when responding to conflict in supply chain relationships. We find evidence that public sector managers are more likely than private sector managers to rely on written (formal) contract mechanisms, but that both public and private managers use relational (informal) governance mechanisms to similar extents. We also find that managers from both sectors perceive an improvement to the quality of the exchange relationship when a relational approach is emphasized in managing the conflict. Our research provides an important contribution to our understanding about the actions public managers take in dealing with supply chain conflicts and suggests potential policy alternatives to foster contracting efficiency and effectiveness.     

The Effects of Doing More with Less in the Public Sector: Evidence from a Large‐Scale Survey

Since the onset of the Great Recession, “doing more with less” has become a policy mantra. To do more with less, a range of governments have concurrently imposed wage cuts and greater work demands on public employees. This article assesses the impact of these changes on the job satisfaction and work motivation of public employees in 34 European countries. Congruent with previous studies linking income and working hours with job attitudes, the article finds a negative impact on both. There are no free austerity lunches: while public employees may work longer hours for lower pay, they are less satisfied and less motivated when doing so. One caveat applies: the effect on motivation—although not satisfaction—is mitigated when employees feel that their values are aligned with those of their organization. This puts a premium on public managers fostering value alignment, particularly when it is hardest to achieve: in times of cutbacks.     

A Job Demands–Resources Approach to Public Service Motivation

This article uses job demands–resources theory to build a model of public service motivation (PSM). Public service motivation determines how employees in the public sector deal with their daily job demands and resources. Highly motivated public servants are able to deal with their job demands and prevent exhaustion. Additionally, because of their sense of calling, they are motivated to mobilize their job resources to stay engaged and perform well. However, if job demands are consistently high and job resources are consistently low, highly motivated public servants will lose their psychological resources, resulting in lower PSM. Reduced PSM, as a consequence, may strengthen the loss cycle of job demands and exhaustion and weaken the gain cycle of job resources and engagement. Public service managers and employees may use this model to optimize their work environment on a day‐to‐day basis.     

Sliding doors in Brussels: A career path analysis of EU affairs managers

This article investigates the revolving doors phenomenon in the European Union (EU). It proposes a management approach that treats this phenomenon as a form of corporate political activity through which companies try to gain access to decision makers. By using sequence analysis to examine the career paths of almost 300 EU affairs managers based in public and private companies across 26 countries, three different ideal‐typical managers are identified: those EU affairs managers coming from EU institutions and public affairs; those who make a career through the private sector; and those who establish themselves in national political institutions. This identification confirms that EU institutions need different types of information and companies need EU affairs managers with different professional backgrounds able to provide it. Rather than observing a revolving door of EU officials into EU government affairs, what the authors term ‘sliding doors’ – namely the separation of careers, especially between the public and private sectors – is discerned.     

International Comparison of Public and Private Employees’ Work Motives,Attitudes, and Perceived Rewards

This article presents a conceptual perspective on the distinctive characteristics of public organizations and their personnel. This perspective leads to hypotheses that public organizations deliver distinctive goods and services that influence the motives and rewards for their employees. These hypotheses are tested with evidence from the International Social Survey Programme in order to compare public and private employees in 30 nations. Public employees in 28 of the 30 nations expressed higher levels of public‐service‐oriented motives. In all of the countries, public employees were more likely to say they receive rewards in the form of perceived social impact. In most of the countries, public employees placed less importance on high income as a reward and expressed higher levels of organizational commitment.

Practitioner Points

• The findings presented here add to previous evidence that public employees seek and attain more altruistic and public‐service‐oriented rewards than private sector employees. In particular, we add evidence that these differences hold in many different nations and cultural contexts.
• Compensation and incentive system reforms in many governments have often concentrated on financial incentives and streamlining procedures for discipline and removal. Such matters are important but should not drive out concerns with showing public employees the impact of their work on the well‐being of others and on the community and society. Leaders and managers should invest in incentive systems that emphasize such motives and rewards.
• Leaders and managers should invest in the use of altruistic and socially beneficial motives and rewards in recruiting systems.